Why Shandong Tire Export Surge in Nov.

Statistics released by Qingdao Customs show that in Nov., Shandong province export 19.47 million new inflated rubber tires, up 38.3% year on year.

The tire exports valued at 4.33 billion yuan, up 24.7%; while the average export price was 222.4 yuan per tire, down 9.9%.

In the first 11 months of this year, Shandong’s tire exports totaled 210 million, up 14.7%; the export value amounted to 45.14 billion yuan, up 4%; but the average export price was 219 yuan per tire, down 9.3%.

Features of Shandong’s Tire Export

First, the monthly export volume rebounded again, but the average export price stayed low.

In the first half of this year, Shandong’s tire exports climbed month by month and hit a new record high in May, after that, the export volume declined until a rebound in Nov., in which the export volume grew 17% from Oct.

With respect to the prices, the monthly export value fluctuated at a low level and stayed flat in Nov. on a monthly basis.

Secondly, processing trade remained the major term of tire export, but general export trade showed a growing momentum.

In Nov., Shandong export 14.61 million tires in terms of processing trade, up 30.4% year on year and accounting for 75.1% of the province’s total export volume.

At the same time, the province exported 4.67 million tires in terms of general trade, up 68.6%.

Thirdly, private enterprises became the major export force.

In Nov., Shandong’s private enterprises exported 14.82 million tires, up 44.8% and accounting for 76.1% of the province’s total export volume.

At the same time, foreign-invested enterprises exported 2.78 million tires, up 18.6%; while state-owned enterprises exported 1.87 million tires, up 25%.

Primary Markets and Products

The European Union, the U.S., Nigeria, Brazil, ASEAN, and Mexico were major export destinations of tires from Shandong province in Nov.

In the month, Shandong exported 3.84 million tires and 2.28 million tires, respectively, to EU and the U.S., up 61.5% and 11.8%.

At the same time, it exported 1.04 million tires to Nigeria, up 32.4%; 1.03 million tires to Brazil, up 2.1 folds; 984,000 tires to ASEAN, up 3.3%; and 949,000 tires to Mexico, down 5.5%.

Tires exported to the six regions accounted for 51.9% of Shandong’s total export volume in Nov.

More than 50% tires exported from Shandong are motor car tires.

In Nov., Shandong exported 10.57 million motor car tires, up 43.8% and accounting for 54.3% of the province’s total tire exports.

At the same time, it exported bus or truck tires of 4.9 million, up 26.5%; and it exported 1.98 million motorcycle tires, up 48.8%.

Reasons for More Tire Exports

Warmed major global auto markets and expanding tire export markets were the major driving forces boosting Shandong’s tire export.

Statistics show that in 2016, the number of automobiles in the U.S. is expected to surpass 18 million for first time, hitting a new record high.

In the first 10 months of this year, the number of passenger cars increased 1.8% in Japan, 4.9% in Germany, 2.47% in the U.K., and 9.45% in Italy.

In Nov., Shandong’s tire exports to those markets all showed two-digit growths.

In addition, the “Belt and Road Initiative” and diversified market deployment also supported Shandong’s tire export.

In Nov., Shandong’s tire exports to countries alongside the “Belt and Road Initiative”, Nigeria and Brazil grew 26.8%, 32.4% and 2.1 folds, respectively.